Although transactions with non-fungible tokens (NFT, for its abbreviation in English) took off and made headlines, they are nothing more than a gimmick for most people outside of the cryptocurrency world. The metaverse will change that.
There is always a turning point at which new technologies suddenly become part of life from something incidental and incomprehensible. This point usually arises from the coming together of a number of drivers, and we are currently witnessing what happens when two of these trends hit the tipping point together.
Mark Zuckerberg’s decision to change the name from Facebook to Meta was enough to get the Metaverse in the headlines around the world, despite the fact that the concept has been around for at least three decades. It is this seemingly sudden appearance of the metaverse that provides the necessary impetus to restore the image of the NFTs, which is viewed as a speculative ploy with cryptos..
Big brands like Morgan Stanley are now predicting the future of NFTs, and the “digital luxury” sector has forecast a metaverse of $ 50 billion by 2030. The next phase of the NFT cycle has begun.
Beyond the virtual
The metaverse is often viewed in terms of virtual and augmented reality, but it’s not that easy, although VR / AR adds to the promised immersive experience. You also think in gamesas in Ready Player One, but is not limited to either. But still, both options give clues as to what will be.
Work on the Metaverse has already turned towards a “full Internet”.to quote Zuckerberg’s vision: A network of interconnected virtual experiences that mix the digital with the physical and offer new ways of working, playing, socializing and creating. Think of it as an extension of the COVID-19 triggered experience of working from home, however now in a virtual space in 3Dwhether you access it through headphones or a normal 2D screen. Remote meetings wouldn’t have to mean a wall of talking heads, but you could share a virtual room with a group of avatars. This is important because A real sense of presence enables more nuanced and natural interactions.
Facebook of course recognized this opportunity immediately and has every reason to continue promoting it. Its Oculus Quest headphones – which were sold out for most of 2020 – have given the VR market a huge boost thanks largely to their ease of use. The speed at which this device has gained makes the new ones stand out Consumer Appetite for 3D Experiences: For the past 18 months, people looking to escape the isolation caused by the pandemic have creatively repurposed games as places of social interaction, whether it be at Animal Crossing weddings or reunions.
There is no clearer indication of how games will lay the foundation for a much wider range of experiences soon. Another actor who has long had their eye on the Metaverse is Epic Games., the studio behind the monster Fortnite, which hosted a virtual concert by electronics artist Marshmello a year before the lockdown. Epic CEO Tim Sweeney chose the Metaverse and offers services – including its Unreal Engine design tools – ???? for free. The goal? Drive development in the direction you want: one with fewer barriers, more interoperability, more data exchange. Less centralized; less harmful.
Metaphysics … with a portion of blockchain
Certainly there is not a fundamental need for a decentralized structure, but it is what many proponents of the metaverse see as the most desirable goal.: what Sweeney describesÂ as “an open framework in which everyone is in control of their own presence, free of control”.
To create a metaverse worthy of the name, rather than a collection of separate 3D spaces, platforms need to be seamless and interoperable.. Payments must be made securely, smoothly, and promptly, and assets created (e.g. custom avatars) can be received and used no matter where you are in the metaverse. Until recently, in order to participate in the digital world, you had to leave clues that allowed guards (game developers, etc.) to recognize you. The blockchain, when used by individuals to keep track of their accounts, assets, and transactions, offers great potential for users to decide how to behave, what to own, and what to trade.
The blockchain is one of the “central enablers” of the metaverseaccording to Matthew Ball, influential Metaverse commentator and venture capitalist. Another crucial element in your definition of the metaverse is that “Feeling of individual presence and … continuity of the data”. The more you “live” on the web, the more important your individual “skin” becomes. Even the simplest pixel art can be strongly associated with individual identity, as demonstrated by the passion for CryptoPunks; its owners often say that they have a close bond with their punk.
In fact, NFTs are making the expression of individuality online more and more possible, be it through randomly generated or carefully designed features. The virtual clothing and accessories that users select in the Metaverse help ensure that each person’s online identity is true and deepened their engagement. Fashion and art are an integral part of self-expression in the physical world; Why should the online world be any different?
As mentioned earlier, digital fashion is booming and offers a new growth opportunity for NFTs. Design houses and celebrities sell furs, costumes, hairstyles and mascots as NFT; “Releasing NFT” is as fashionable as releasing an unexpected album. ActuallyMusicians and athletes alike are taking advantage of opportunities to obtain copyrights in the sale of NFT assets in the hopes of creating a new system of property rights without the burden of the practices of traditional intermediaries.
As digital property rights become legitimate and blockchains become more secure, NFTs can become more serious bargaining devices. For example, imagine a group negotiating with Disney over the rights to use their characters. Does it seem crazy? Sotheby’s recently saw a DAO (made up of 17,000 donors) raise the bid for a rare copy of the United States Constitution to more than $ 43 million. While they didn’t win, it is clear that the joint ownership made possible by the NFT will become a real economic force.
Financing the future
What does all this mean for capitalism, innovation and creativity? What about business models and our life experience?
The variety of sources of income available in the metaverseFrom gaming to ticketing to software subscriptions to healthcare, has the potential to shift the technology paradigm away from advertising and big data, with all the privacy and security nightmares that come with it. While this is not a fact, it is at least a possibility.
The more open and accessible the platforms, the stronger this narrative will be. Connected platforms attract more users; then seamless and interoperable asset and payment mechanisms increase your incentive for design and trade, circulate revenue throughout the system and increase the potential for a parallel economic order.
The major gambling companies are already making their games available to the public. metaversed development tools with the express aim of promoting interoperability and thus wider acceptance. These companies believe that an open metaverse is best for business. This will undoubtedly be the best way to create a thriving online economy, in which users are motivated to participate and create value that will benefit both platform developers and user creators.
It is possible that the technological, philosophical and economic arguments for once point in the same direction: towards a distributed metaverse that uses the capabilities of blockchain technology., where online citizens can finally escape the walled gardens of Web 2.0 and benefit from their contributions. In this exciting new world, NFTs will bridge the gap between the real and the virtual. From identity to business, physical property will make a difference. It’s a whole new level of reality.
This article does not provide investment advice or recommendation. All investing and trading involves risk and readers should do their own research in making a decision.
The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect the views and opinions of Cointelegraph.
Stephanie so is an economist, policy analyst, and co-founder of Geeq, a blockchain security company. Throughout his career, he has applied technology in his specialist disciplines. In 2001, she was the first to apply machine learning to social science data at the National Center for Supercomputing Applications. Most recently, as a Senior Lecturer at Vanderbilt University, she examined the use of distributed network processes in healthcare and patient safety. Stephanie holds a BA from Princeton University and the University of Rochester.